Responsible procurement approachResponsible procurement approach
VTB adheres to a responsible approach to procurement and consistently works to create a transparent and efficient procurement infrastructure and improve cooperation with suppliers.
VTB Bank's procurement activities are aimed at ensuring that the Bank's needs for high-quality products are met in a timely and complete manner, subject to the following conditions:
- Procurement transparency;
- Efficient use of funds;
- Expanding the opportunities for legal entities and individuals, including small and medium businesses, to participate in procurement;
- Development of fair competition.
The Bank is guided by basic procurement activity principles and ensures the transparency of procurement processes, equal rights, non-discrimination and the absence of unjustified restrictions on competition towards participants. VTB adheres to the principle of targeted and cost-effective spending of funds and does not limit access to procurement opportunities by setting biased requirements for participants.
In order to improve the digitalisation of our procurement processes, in 2020 VTB introduced electronic document management between the Bank and its counterparties, launched iProc, a new procurement management system, and developed and introduced robotised technologies to process bulk transactions.
As part of the creation of an optimal model for the management of VTB's procurement function, in 2020 the procurement functions of a number of the Bank's divisions were centralised in a single competence centre.
Key areas for the development of responsible purchasing at VTB Bank
Increasing the share of small and medium enterprises in total procurement
An important achievement of 2020 was the greater access of small and medium enterprises to the Bank's procurement activities. The total volume of orders placed among them amounted to RUB 33.6 billion. At the same time, the annual volume of procurements from small and medium enterprises was 40% (with the statutory standard of 20%). The annual volume of procurements, participants of which may only be small and medium enterprises, amounted to 27% (with the statutory standard of 18%).
Low-volume procurements in 2020 were transferred to the Corporate Online Store on the VTB Business Connect platform. On the one hand, this approach ensures increased competitiveness of potential suppliers, as well as provides an opportunity for objective assessment of the existing quotation market and analysis of information on fulfillment of obligations by suppliers from VTB. On the other hand, it is an effective online platform that promotes fair competition and provides opportunities for small businesses to become reliable suppliers to VTB. A total of 2,820 procurements totalling RUB 0.7 billion were made through the VTB Business Connect Corporate Online Store in 2020.